Interim Report Q2 2020

July  15, 2020

April - June 2020

Second quarter

  • Net sales decreased by 16.5% in the second quarter compared to the same period last year and amounted to SEK 3,338M (3,996). Acquisition effects amounted to 2.6% (6.9%). Negative currency effects amounted to -1.3% (2.6%). Organic growth was negative at -17.8% (4.4%). The end of the quarter shows a recovery and sales on a par with the previous year.
  • The operating profit for the quarter amounted to SEK 241 M (373), a decrease of 35% compared with the same period last year. The operating margin amounted to 7.2% (9.3%). The main reason is the effects of Covid-19, but also to some extent lower prices for refrigerants.
  • Profit before tax was SEK 227M (359). Net financial items are in line with previous years despite increased borrowing in connection with the acquisition of ACD Trade at the beginning of the year.
  • Profit per share before and after dilution amounted to SEK 1.31 (2.08) and SEK 1.30 (2.06) respectively, which is a decrease of 37%.
  • Cash flow was positive during the quarter and cash flow from current operations amounts to SEK 327M (-45). Unutilised credits amount to SEK 913M (1,427). Beijer Ref has performed a procurement and will after the end of the quarter extend the outstanding credits that fall due in November 2020.
  • During the quarter, the group entered into a partnership with compressor manufacturer Bitzer in Australia and New Zealand; the group has previously entered into partnerships for Europe, Asia and Africa. Under the new agreement, Beijer Ref will be able to offer a complete range of Bitzer's product portfolio.
  • After the end of the quarter, Beijer Ref signed a new exclusive agreement with Carrier International Corporation until 2023 regarding the continued sale and distribution of Carrier's comfort cooling product lines on the European market.

First half 2020

  • Net sales decreased by 8.3% in the first half compared to the same period last year and amounted to SEK 6,816M (7,430). Acquisition effects amounted to 2.9% (12.4%). Negative currency effects amounted to -0.3% (3.3%). Organic growth was negative at -10.9% (5.8%).
  • The operating profit for the period amounted to SEK 438M (617), a decrease of 29% compared with the same period last year. The operating margin amounted to 6.4% (8.3%). The main reasons are the effects of Covid-19 and lower prices for refrigerants.
  • Profit before tax was SEK 409M (588). Net financial items are unchanged compared with previous years despite increased borrowing in connection with the acquisition of ACD Trade at the beginning of the year.
  • Profit per share before and after dilution amounted to SEK 2.37 (3.40) and SEK 2.35 (3.38) respectively, which is a decrease of 30%.
  • The acquisition of the wholesale company ACD Trade in Australia was completed in the first quarter of 2020. The company has annual sales of SEK 540M with 60 employees across 9 branches. The company is included in the consolidated accounts with effect from 1 February 2020.
  • Beijer Ref has been affected by Covid-19 since the middle of March. Measures have been taken in all parts of the business to fend off some of the effects. This has led to net savings amounting to approximately SEK 150M during the period and the total net savings for 2020 are estimated to be approximately SEK 200M. The assessment is that Covid-19 will have a smaller effect on the group's earnings for the remainder of 2020, but the situation is difficult to assess.

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